GBP/USD loses 1.42 on heightened Brexit fears
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GBP/USD loses 1.42 on heightened Brexit fears

A fresh opinion poll in one of Britain’s leading newspapers, the conservative  Telegraph, shows a small lead for Britain leaving the European Union, with elevated enthusiasm for the Leave campaign, according to the  Lynton Crosby  survey. Immigration is the key sticking point.

This weighs on  the pound, with GBP/USD extending the “risk off” slide below 1.42. Update: the pair is already pushing lower and challenging the next line of support at 1.4175. It is important to note that the fall is exacerbated by a  stronger greenback across the board.

Here is a quote from the article:

Tuesday’s ORB poll finds that without taking into account people’s likelihood to vote, the campaigns are virtually tied, with Remain on 47 per cent and Leave on 49 per cent.
However, when likelihood to vote is taken into account, the Leave campaign would win on 52 per cent of the vote, with remain trailing on 45 per cent. It also reveals that one third of undecided voters (31 per cent) say their “biggest hesitation” in backing the Remain campaign is the “potential for uncontrolled or increased immigration” in the EU.

Indeed, the enthusiasm is also visible in the Telegraphs’s online poll embedded  in the article: it shows 77% support a Brexit. This is clearly not a  scientific poll but just shows the stronger conviction of the Leave campaign vs. the Remain one.

Here is how the move looks on the chart. The poll was published on the online version of the  Torygraph at 7:56 GMT and there  seems to be a nice correlation with the movement on the cable chart. 1.4175 works as further support, followed by 1.4125 following up. The round level of 1.40 is key support.

Resistance awaits at 1.4280 and 1.4365, and a rise now depends on US data.

Tomorrow we have the jobs report in the UK. See how to trade  UK  wages with GBP/USD.

Brexit Telegraph March 15 GBPUSD

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.